M7: Non-Parametric Techniques Scenario Assignment

Caption: Princess Foods Corporation has observed the changing awareness of the population on health and nutrition. Therefore, they want to investigate the acceptance of a low-calorie product and a low-sodium product by market segment.(gender) Are people more concerned about low-calorie soups or low-sodium soups and how does that break down by market segment (age)?

Mieke: Here's what we did: Two hundred customers were selected at random for two different interviews. We were hoping that the information that we gleaned from these interviews would indicate the relative interest in low-calorie and/or low-sodium soup and how that interest was broken down by market segment. That's going to give us insight into what the market wants and insight into who this customer is.

Assignment The question that was asked, "Which of the following three products are you most interested in?" Then the results were tallied, indicating how many males and how many females preferred each of the three options. A study for each collected the following data. Test for independence at a significance of 5%.

1) What are your conclusions and how would you recommend the results be used by the marketing department?

Category: Male. Female

Low Calorie. 12 46

Regular Broth. 22 32

Creamed Soups. 66 22

2) A second question that was asked, "Which of the following three products are you most interested in?" Then the results were tallied, indicating by age category preference for each of the three options. A study for each collected the following data. Test for independence at a significance of 5%. Categories 50 years or younger Over 50

Low sodium 31 40

Regular broth 33 38

Creamed soups 36 22

Answer the following questions using this data: Test for independence at a significance of 5%. What are your conclusions? How would you recommend Mieke and the marketing team use the results?